Unexpected Uses for Life Insurance

8/22/2016

You have the best interests of your family in mind; a life insurance policy is an investment in those interests. No one likes to think about life insurance, but it is essential to ensuring that your family is taken care of should the worst happen. According to the Employee Benefit Research Institute, 65.4 percent of households 55 and older had debt in 2013, up from 53.8 percent twenty years ago*. Because of this, a surviving spouse could be left with substantial debt. Beyond covering your final expenses, here are some additional benefits of life insurance to consider:

Daily Living. A daily living rider can be a huge advantage when dealing with a scenario such as a chronic illness. If you become unable to perform necessary daily activities such as dressing or bathing, you can have accelerated access to your policy’s death benefit, with the remainder going to your beneficiary when you die.

Keeping the Business in the Family. Certain taxes may apply when passing a family business to the next generation. Life insurance can help cover those costs, easing the tax burden on the future business owner and other family members.

Retirement. Certain types of life insurance policies build cash value over time that can be a form of income in retirement.

Charity. Life insurance can be a great tool for increasing charitable giving in your community. Policy holders can have the opportunity to make a larger gift than would otherwise be possible by designating a favorite charity as a beneficiary on their life insurance policies.

Elder Care. If you are able to tap into the cash value of your life insurance policy, you could use that money to enable you to take the time off of work to care for an elderly relative. While no one can predict when a family emergency will arise, ensuring that you are financially prepared will take some of the stress out of a fraught situation.

Mortgage/College. Life insurance can protect your family from the obligations of making mortgage or college payments if your salary is no longer available to them. To that point, if the unexpected happens to you, the proceeds of your policy can be used for a variety of scenarios.

Keep in mind that all of these scenarios could have an impact on your death benefit. By understanding the options that come with your life insurance policy, you are empowering yourself to take control not only of your future, but the needs of the present. Be sure to ask your Farm Bureau agent about the ways your life insurance policy can work for you.

Agent must be a registered representative of FBL Marketing Services, LLC to discuss mutual funds or college funding options.

Health insurance policies vary by carrier & individual and may not be offered through all agents or available in all states. Health insurance is underwritten by a variety of insurance companies not affiliated with our companies.

Long-Term Care and Disability Income insurance policies are underwritten by a variety of insurance companies that are not affiliated with our companies.

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